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    I n t e r n a t i o n a l M a r k e t i n g

    History and Geography:

    The Foundations

    of Culture

    Chapter 3

    1 4 t h E d i t i o n

    P h i l i p R. C a t e o r a

    M a r y C. G i l l y

    J o h n L . G r a h a m

    McGraw-Hill/IrwinInternational Marketing Copyright 2009 by The McGraw-Hill Copanie!" Inc# $ll

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    3-2

    What Should You Learn?

    The i!portan"e of history and geography inthe understanding of international !ar#ets

    The effe"ts of history on a "ountry$s "ulture

    Ho% "ulture interprets e&ents through itso%n eyes

    Ho% the 'nited States !o&ed %est and ho% this

    !ore affe"ted attitudes

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    3-3

    What Should You Learn?

    The effe"t of geographi" di&ersity on e"ono!i"profiles of a "ountry

    Why !ar#ets need to (e responsi&e to

    geography of a "ountry

    )"ono!i" effe"ts of "ontrolling populationgro%th &ersus aging population

    Co!!uni"ations are an integral part ofinternational "o!!er"e

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    3-*

    Glo(al +erspe"ti&e,irth of a ation . +ana!a in /0 Hours

    To understand a so"iety$s a"tions and itspoints of &ie%1 you need to appre"iate:

    . The influen"e of histori"al e&ents

    . The geographi"al uniueness to %hi"h a "ulture has had toadapt

    To interpret a "ulture$s (eha&ior and attitudes1a !ar#eter !ust ha&e so!e idea of a

    "ountry$s history and geography

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    3-

    History +erspe"ti&ein Glo(al ,usiness

    History helps define a nation$s !ission

    . Ho% it per"ei&es its neigh(ors

    . Ho% it per"ei&es itself

    . 4ts pla"e in the %orld 4nsights into history are i!portant for

    understanding "urrent attitudes

    4t is ne"essary to study "ulture as it is no% as%ell as to understand "ulture as it %as

    . 5 "ountry$s history

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    3-/

    Historyand Conte!porary ,eha&ior

    6apanese history

    . Se&en "enturies under the shogun feudal syste!

    . The isolation (efore the "o!ing of 5d!iral +erry in 783

    . Threat of do!ination (y "olonial po%ers

    . 9ise of ne% so"ial "lasses

    . Western influen"es

    . Hu!iliation of World War 44

    . 4n&ol&e!ent in the international "o!!unity

    Histori"ally1 loyalty and ser&i"e1 a sense of responsi(ility1 andrespe"t for dis"ipline1 training1 and artistry %ere stressed to

    !aintain sta(ility and order

    5 histori"al perspe"ti&e gi&es the foreigner a (asis on %hi"h to(egin de&eloping "ultural sensiti&ity and a (etterunderstanding of "onte!porary 6apanese (eha&ior

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    History is Su(e"ti&e

    Histori"al e&ents al%ays are &ie%ed fro!one$s o%n (iases and S9C

    5 "ru"ial ele!ent in understanding anynation$s (usiness and politi"al "ulture isthe su(e"ti&e per"eption of its history

    . 9elationship (et%een ';S; and

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    Territorial )=pansionof 'nited States fro! 7083

    Exhibit 3.1

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    3-7A

    ';S; 4nter&entionin Latin 5!eri"a Sin"e 7@*

    Exhibit 3.2

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    3-77

    Geography and Glo(al

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    3-72

    Cli!ate and Topography

    5ltitude1 hu!idity1 and te!perature e=tre!es

    . South 5!eri"a

    . ,ritish resistan"e of the )nglish Channel

    . Trade through the 5lps

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    3-73

    Geography1 atureand )"ono!i" Gro%th

    5s "ountries prosper1 natural (arriers areo&er"o!e

    )n&iron!ental issues

    . isruption of e"osyste!s

    . 9elo"ation of people

    . 4nadeuate haardous %aste !anage!ent

    . 4ndustrial pollution

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    3-7*

    So"ial 9esponsi(ilityand )n&iron!ental

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    3-7

    9esour"es

    The a&aila(ility of !inerals and the a(ility togenerate energy are the foundations of !odernte"hnology

    The prin"ipal supple!ents to hu!an energy. 5ni!als

    . Wood

    . Fossil fuel

    . u"lear po%er. B"ean tides

    . Geother!al po%er

    . The sun

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    9esour"es

    'nited States in perspe"ti&e

    . 7@*2 . nearly self-suffi"ient

    . 7@A . !aor i!porter

    . 7@03-2AAA . in"reased dependen"y fro! 3/D to //D.

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    3-70

    World )nergy Consu!ption

    Exhibit 3.3a

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    3-78

    World )nergy Consu!ption

    Exhibit 3.3b

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    3-7@

    yna!i"s of +opulation Trends

    Glo(al population trends deter!ine today$sde!and for goods

    . 9uralEur(an population shifts

    . 9ates of gro%th

    . 5ge le&els

    . +opulation "ontrol

    Changes in population %ill profoundly affe"tfuture de!and

    The !ost i!portant deterrent to population"ontrol is "ultural attitudes a(out the i!portan"eof large fa!ilies

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    3-2A

    World +opulation (y 9egion . 2AA-2AALife )=pe"tan"y at ,irth . 2AA-2A7A !illions

    Exhibit 3.4

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    3-27

    9uralE'r(an

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    3-22

    +opulation e"line and 5ging

    +opulation gro%th in !any "ountries hasdropped (elo% the rate ne"essary to !aintainpresent le&els

    5 nation needs a fertility rate of a(out 2;7"hildren per %o!an

    ot one !aor "ountry has suffi"ient internalpopulation gro%th to !aintain itself

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    3-23

    5ge ensity for Worldand Sele"ted Countries

    Exhibit 3.5

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    3-2*

    Wor#er Shortage and 4!!igration

    The free flo% of i!!igration %ill help toa!eliorate the dual pro(le!s of e=plosi&epopulation e=pansion in less-de&eloped

    "ountries and %or#er shortage inindustrialied regions

    )urope %ill need 7;* (illion i!!igrants o&erthe ne=t A years

    6apan and the ';S; %ill need /AA !illioni!!igrants (et%een no% and 2AA

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    3-2

    AA Years of Trade

    Exhibit 3.6a

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    3-2/

    AA Years of Trade

    Exhibit 3.6b

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    3-20

    World Trade 9outes

    +rogression of trade routes

    . B&erland

    . Sea routes

    . 5ir routes

    . The 4nternet

    Trade routes (ind %orld together1 !ini!iing:

    . istan"e

    . atural (arriers

    . La"# of resour"es

    . Funda!ental differen"es (et%een and e"ono!ies

    Trade routes represent atte!pts to o&er"o!einfluen"e of geography

    . Causing e"ono!i" and so"ial i!(alan"es

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    3-28

    Co!!uni"ation Lin#s

    Telegraph

    Telephone

    Tele&ision

    Satellites

    Co!puter 4nternet

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    3-2@

    Su!!ary

    5 prospe"ti&e international !ar#eter should (ereasona(ly fa!iliar %ith the %orld1 its "li!ate1and topographi" differen"es

    Geographi" hurdles !ust (e re"ognied asha&ing a dire"t effe"t on !ar#eting and therelated a"ti&ities of "o!!uni"ations anddistri(ution

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    3 3A

    Su!!ary

    Without a histori"al understanding of a "ulture1the attitudes %ithin the !ar#etpla"e !ay not(e fully understood

    The study of history and geography is neededto pro&ide the !ar#eter %ith an understandingof %hy a "ountry has de&eloped as it hasrather than as a guide for adapting !ar#eting

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